STC Market Update 19/08/19

The STC market had a strong finish to last week with the spot price edging higher to close at $37.20. This continued to show strength in the market with a 20c gain from where it opened at $37.00. Trading was all around this level without much volatility. The spot price now matches the forward price curve for later this year.

There were some major issues with the REC Registry last week which meant certificate creations were lower. Approx 590,000 STC’s were created, down nearly 90k from the previous week. Whether or not this had any bearing on the STC price is debatable, but it will mean that next weeks creations will be higher to compensate.

Buying interest remains strong for early 2020 with bidders now willing to pay up to the mid thirty seven dollar mark. Historically the price strengthens in the first quarter as we approach the announcement of the next years renewable energy percentage. The number of STC’s listed on the clearing house currently sits at 445,086. Last week the figure was 482,192 so listings have dropped significantly. This is likely due to both the stronger price and an acknowledgement from sellers that the clearing house facility is unlikely to be used until at least mid next year. A link to the STC clearing house can be found here.

Our latest pricing for both registered and non-registered STC’s can be found here.